For most people, buying a home is one of the largest financial decisions that a person or couple will make. In California, unlike other states, the transaction is usually handled through real estate agents and brokers and without the presence of an attorney. In other states, attorneys are required to be involved in the escrow process. While, we understand that it is sometimes quicker to not involve an attorney, doing so can have a high cost, especially when you are dealing with purchase and sale contingencies.
For example, our Los Angeles based real estate attorneys know the ins and outs of dealing with purchase and sale contingencies. Purchase and sale agreement contingencies are the conditions precedent or conditions that the buyer must remove before passing the point of no return with respect to its ability to retain its deposit if it chooses not to go forward with the purchase of the property. One of the most common contingencies in a purchase and sale agreement is the appraisal contingency. The appraisal contingency gives the buyer the ability to cancel escrow and refuse to go forward with the purchase of the property if the property does not appraise at the agreed upon purchase price. Thus, if the purchase and sale agreement calls for the property to be purchased for $500,000 but it only appraises at $450,000 then, because of the appraisal contingency, the buyer has an ability to cancel escrow. This is important because the buyer may not be able to get a commercial loan if the property does not appraise at the purchase price. As you can see, this contingency is an important tool for the buyer of property.
There are a few other key contingencies in purchase and sale agreements, like the following:
1. Appraisal Contingency
2. Inspection Contingency
3. Loan Contingency
The real estate attorneys at Schorr Law have experience providing buyers and sellers with legal advice regarding purchase and sale contingencies and disputes. Contact us for an initial evaluation of your case at (310) 954-1877, or firstname.lastname@example.org.